Trading UK stocks? CFDs or direct?

[fillyerboots]

Hi, I'm looking at trading London ( FTSE 250 )

What method are most traders using?

I would assume that CFD's are popular because of the lack of SD, leverage and shorting ability.

However, CFD's seem expensive- GNI Touch 25 bps a side, get in and out and you have paid your stamp duty.

Also I'm not convinced that you don't get a wider spread than the order book.

Anyway are CFD's the preferred route or am I missing something? 😎

 

[cassiopeia]

FTSE250 stocks attract wider spreads than FTSE100 but can still be rewarding. I used City Index CFDs this year untill I hit my CGT allowance, but these attract 20 bps a side which is still way too high. If you negotiate they may cut this.

Personally I am now waiting for idealing or Finspreads to start offering FTSE250 as rolling spread bets. However etrade offer £10 a trade for CFDs. Remember spreads and commissions are only part of the story, check the financing terms and interest on cleared funds. Also check you are getting market prices, a little bias can destroy a good strategy.

Of course you can set your own price and potentially get a worked order but this doesn't suit my style of trading. If you hear of anyone else offering attractive spreads and commissions on FTSE250 (CFD or SB) please tell me.